Regular
reports on the growing Poverty, Unemployment, Debt and Inequality of
the neo-capitalist world
Europe:
“The
economic recovery which started in the EU in the spring of 2013
remains fragile and appears to have lost some momentum. Forecasts for
2014 and 2015 have recently been revised downwards, in particular for
the euro area (EA). In the second quarter of 2014 GDP remained stable
in the EA and increased moderately (+0.2%) in the EU. Output growth
in the EA in particular, was pulled down by the weak performance of
the three main economies: Germany, France and Italy.”
“The
increase in EU employment observed in the year to the first quarter
of 2014 (+0.6%) could be seen as the combined outcome of three main
factors. First, more than half of the annual increase was
attributable to an increase in temporary contracts (+2.6%). Second,
part-time work, which never declined throughout the crisis, had,
continued to increase (+0.9%). Finally, and for the first time in
the EU since the third quarter of 2011, there was an increase in the
number of people working full time (+0.3%), equivalent to around
500.000 more people (mainly women aged 40-64) working full time.”
“Long-term
unemployment is a growing problem in the EU. Addressing long-term
unemployment is an increasingly difficult challenge. Being out of
work for an extended period reduces individuals' general and
sector-specific skills and increases the probability of their
becoming discouraged and looking less actively for jobs. In the first
quarter of 2014, a total of 12.9 million people (5.3% of the labour
force) had been unemployed for at least one year and more than half
of these had been unemployed for more than two years. Long-term
unemployment rates have reached historic highs in Greece and Spain
and worryingly they are not decreasing.”
“At
21.6%, in August 2014, the EU unemployment rate for those aged 15 to
24 was more than twice the overall unemployment rate in the EU.
Several of the Member States with very high youth unemployment rates
recorded significantly lower levels compared to a year ago.
Nevertheless, youth unemployment is very high and increasing in
Italy. Youth unemployment rates in the EU range from around 10% or
less in Member States less affected by labour market deterioration
(e.g. Austria and Germany) to more than half of the young people
active in the labour market in countries such as Greece and Spain,
where youth unemployment is now nearly three times higher than in
2008.”
“More
than 40% of young employees were on a temporary contract, 3.5 times
more than amongst prime-age adults (25-54 years old), and nearly a
quarter of young people work part-time, up from less than 20% in
2008. It should be noted that the decline in employment cannot be
explained by more young people going into education, as the rate of
young people not in education, employment or training (NEET)
increased from 11% in 2008 to nearly 13% in 2010-2014.”
“Growth
in nominal unit labour cost, which affects domestic prices and
international competitiveness, remained subdued in the euro area as a
whole, primarily reflecting weak growth in compensation per employee.
Nevertheless, notable differences between Member States in the euro
area remain, with Cyprus and Greece recording sharp contractions and
Estonia a significant increase. Growth in real unit labour cost
(which is also a measure of the labour income share) regained growth
momentum in the euro area and in the EU as a whole, with Spain
showing some increase after several years of persistent decreases.
Overall, while recent data continue to show some positive and very
welcome labour market developments, the economic recovery remains
fragile, giving grounds for caution for the future.”
Source:
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